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April 3, 2020 | The Next Global Debt Crisis Isn’t Coming–It Has Arrived

Danielle Park

Portfolio Manager and President of Venable Park Investment Counsel (www.venablepark.com) Ms Park is a financial analyst, attorney, finance author and regular guest on North American media. She is also the author of the best-selling myth-busting book "Juggling Dynamite: An insider's wisdom on money management, markets and wealth that lasts," and a popular daily financial blog: www.jugglingdynamite.com

A good little primer on global debt waves in this segment.  Every debt is counted as an asset on the balance sheet of lenders and investors, and these have been levered as collateral underlying trillions in other spending, loans and asset purchases of all kinds over the last decade.  As defaults spread and asset prices now fall, this sparks a frenzy of forced selling to raise cash and lower leverage.  We should keep in mind that the present deleveraging cycle is global and the largest ever in history.

Total worldwide debt is expected to continue growing over the coming months, despite having just climbed to a fresh all-time high. Given the three previous waves of global debt accumulation have all ended with financial crises, CNBC’s Sam Meredith takes a look at the risks associated with the latest build-up.  Here is a direct video link.

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April 3rd, 2020

Posted In: Juggling Dynamite

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